He says it’s still in good condition despite its age and he has no plans to replace it with a new car.
“It serves my family well,” he told FMT. “I can save a lot using the same car, which I finished paying for a few years ago. I don’t want to add to my debts by buying a new car. It’s more important for me to use my money for investments.”
Fadzil is among many who are holding on to the cars they already own as they try to cope with the rising cost of living.
Figures given by the Asean Automotive Federation (AAF) show that Malaysia and Brunei were the only Asean countries that didn’t record an increase in vehicle sales last year. Indeed, total sales in Malaysia fell by 3,450 units from 2016’s figure of 580,085. In Brunei, 11,209 units were sold in 2017, representing a drop of 15% from the previous year.
In a recent interview with FMT, Federation of Motor and Credit Companies Association of Malaysia president Tony Khor said vehicle sales for the next two years were expected to remain low.
He said motorists were not keen on changing cars because the drop in prices since 2014 had made it difficult for them to sell their old ones at prices that would enable them to settle their loans.
The dip in prices came after the government announced tax reductions on hybrid cars and cars with green technology.
Khor said this saw prices of new cars dropping by at least 13%.
“Those who bought their cars before 2014 are not trading them in because they will incur big losses, having bought their cars at higher prices,” he said.
For Proton Exora owner Almuhsen Abu Atin, changing cars is not something he would consider at the moment.
Like Mohd Fadzil, he does not see the need for a new car because his Proton, which he bought in 2009, is still in good condition.
Furthermore, he said, his financial position did not allow him to change cars. “I still owe the bank,” he said.
Almuhsen works as security guard at Universiti Kebangsaan Malaysia and is the head of a family of nine.
Kamal Amiruddin owns three cars – a 15-year-old 1996 Honda City 1.3 Exi Sedan, a nine-year-old Proton Waja and a four-year-old Honda E Vtech 1.3.
He said he did not intend to get another car as he did not want to be burdened by more debts.
“My cars are still usable and I have no problems with them,” he said.
Federation of Malaysian Consumer Associations (Fomca) vice-president Yusof Abdul Rahman said consumers had become more thrifty nowadays.
He said people’s reluctance to buy new cars was at odds with the government’s claim that the economy was improving.
“People seem unconvinced even when car dealers have promotion campaigns and offer lower prices,” he said.
“In most cases, car owners are still using their old vehicles as they have other priorities to take care of. Their priority is not a new car but meeting their daily needs and other expenses.”